AKRA audited net profit for FY2015 surge 28% to Rp 1,034 billion

Highlights

• Growth in all business segments during 2015 despite tough year
• Improvement in profitability and improved margins in all segments
• Effective financial management with strong cash flows and low leverage
• Improving outlook in petroleum, basic chemicals and industrial estate segments during the current year

JAKARTA, 14th March 2016 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ), Indonesia's leading provider of logistic services and supply chain solutions for bulk chemicals and energy distribution reported its audited financial statements for the year ended 2015 with Net Profit After Tax of Rp 1,034 billion, up 28% from Rp 810 billion during the year 2014. In terms of margins, the company has reported significant improvements across all business segments with gross margin of 11,21%, operating margin of 6.83% and net margin of 5,23% in 2015.

The financial statements audited by Purwantono, Sungkoro & Surja (member firm of Ernst & Young) received an unqualified opinion. The company's consolidated gross revenues has reported a decline in overall revenues from Rp 22,468 billion in 2014 to Rp 19,765 billion in 2015 attributed to low oil prices.

The strong profits AKRA reported during 2015 year demonstrates the company’s ability to maintain its growth momentum despite the significant decline in petroleum prices and slowing demand from industries in Indonesia due to the company's ability to deliver effective supply chain solutions while maintaining a strong focus on risk management and cost control.

Table 1. Highlights of Consolidated Statements of Income
(Rp billion)

In line with profit growth, Earning per share (“EPS”) attributable to equity holders of the parent entity grew to Rp 262.74 per share in 2015 from Rp 207.79 per share in 2014.

Commenting on the full year financial results, President Director Mr Haryanto Adikoesoemo said “Continuing from last year’s strong performance, it’s my privilege to announce that this year AKRA continues to produce solid financial results evidenced by 28% growth in net income year-on-year. Our strategy to maximize profits while maintaining margins through strong cost controls have enabled us to meet our earnings target”.

“Utilising our extensive infrastructure network and capitalizing upon the opportunity presented in this low oil price environment, we will continue to expand our distribution of petroleum and raw materials. One of the key initiatives we have embarked this year is the introduction of RON92 product which we will distribute through our existing and new retail outlets”said Mr Haryanto.

Mr. Haryanto also said “In terms of the development progress in JIIPE Integrated Industrial and Port Estate in Gresik, significant progress has been achieved in development of infrastructure and preparation of the industrial plots. Construction of industrial plants at the site has commenced and the port operations in first stage of 85ha and 500 metres jetty has commenced since January 2016. We are now finalizing the first power plants and other utilities which will enable us to offer integrated industrial estate with low cost logistics and energy solutions to our industrial estate tenants”.  

Outlook for 2016

With Indonesia’s GDP expected to record an increased growth from 4,9% in 2015 to 5.4% in 2016 according to the estimate made by Asian Development Bank as well as the improvement in investment climate we are confident that demand for basic raw materials, petroleum products and industrial estates will increase during the year 2016. Deregulation in downstream petroleum segment, including increase in demand for unsubsidized fuels in industrial and retail segments will enable AKRA to increase its volumes and maintain growth in its earnings